Your ability to work provides you with the means to pay your mortgage, car note, child care, and other expenses. If an injury or illness prevents you from doing your job, you’ll need insurance to avoid lost income. The below guide offers more information about disability insurance and what it covers.

What Is Disability Insurance?

Definition

Unless you are eligible for paid sick leave, you may not be able to work if you have a sickness or injury. Disability insurance will pay a portion of your income until you can return to your job. The timeframe it covers depends on how long you’ll need compensation.

Types

The two main types of this plan are short- and long-term. Both replace a percentage of your monthly income according to a cap set by your provider. Short-term may cover anywhere from several months to a year at a rate of 60 to 70% of your income, and you’ll only have to wait about two weeks to receive compensation. Long-term lasts several years, or for the duration of more severe illnesses or injuries. It covers 40 to 60% of lost income and takes up to one month to arrive. 

Benefits

Disability insurance prevents you from burning through your savings or selling off your assets due to lost income. It will keep you from defaulting on bills and payments while ensuring that you have enough money for everyday needs. Coverage will provide you with peace of mind by protecting you financially.

If you need financial compensation because you cannot work, apply for disability insurance through Hummel & Plum Insurance Agency. This agency offers life, health, homeowners, farm, and business policies to clients throughout Chillicothe, OH. Call (740) 773-1620 to request a quote on a plan, and visit the website to learn more about how they can protect you.